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In 2014, Tanzania’s regulators made the country the first in Sub-Saharan Africa to permit interest payments on mobile money wallets. Currently, annual interest rates range from seven to nine percent, four times greater than the average deposit in a US bank. Despite this, mobile savings balances remain low, especially among low-income users. In order to understand what influences the saving behaviors of low-income Tanzanians, our team, eMBeD, together with the Consultative Group to Assist…
To promote college access and affordability, education tax credits help with the cost of college by reducing the amount of tax owed. The most generous Federal higher education tax credit, the American opportunity tax credit (AOTC), is a maximum annual credit of $2,500 per eligible student. Yet, many eligible students (or their families) do not claim the credit. Among eligible students, national estimates indicate that 46 percent of independent students and 56 percent of dependent students take…
In a series of field experiments, six municipalities investigated whether a different approach in social assistance could get more people into work. The study focused on the effects of an exemption from the obligation to seek work, more intensive counselling or higher earnings disregards for additional income. A different approach can increase the number of people finding jobs. More research is needed. Why the experiments were conducted: increasing the effectiveness of the Participation…
A circular business model promotes reuse of products and materials. A case in point is a model where consumers return their jeans to the manufacturer after use. Which circular business model characteristics are consumers willing to accept right now, and what do they refuse? Acceptance of these models seems to increase if companies offer effective or appealing option combinations, such as monthly payment schedules and discounted returns. Why this experiment was conducted: to promote the circular…
Water scarcity remains common in Brazil, especially in the Recife Metropolitan Region (RMR) in the State of Pernambuco. The RMR is subject to particularly high levels of non-revenue water—which occur when high volumes of water produced do not generate revenue for the supplier. While some losses may be due to structural and operational inefficiencies such as leaky pipes, clients also play a key role by defaulting on their water payments or installing bypasses to consume water free of charge.…
Challenge The City of Philadelphia in Pennsylvania offers a discount to low-income senior citizens living in the municipality on their water bills. Senior water and sewer customers can apply to receive 25 percent off their payments for water in an effort to reduce the financial burden on those elderly citizens with lesser means. However, despite the fact that this would benefit the citizens in question, the City of Philadelphia noticed that many low-income seniors eligible for the discount were…
How does the presence of consumer protection affect decisions at retirement? Oxera undertook a behavioural experiment for the UK Financial Services Compensation Scheme (FSCS) to understand the role of FSCS protection—in both how consumers select their retirement income products, and whether they choose to obtain financial advice. This revealed how people behave in a realistic environment, providing insight into actual consumer behaviour and the importance of the FSCS in their decision-making.
The OSGG supports the Governor General in recognizing, promoting, and cultivating excellence by Canadians to strengthen our national identity, unity, and pride. Central to these goals is nominating and appointing Canadian Honours, such as the Order of Canada, which celebrate and reflect the diversity of exceptional contributions that Canadians have made to their country. Maintaining the relevance of these Honours is important to sustaining a shared Canadian identity, and consequently cultivating…
Are people more likely to file their tax returns correctly if they receive a thank-you in advance or afterwards? Analyses show that thank-you messages have no effect on compliance behaviour. Why this experiment was conducted: positive alternative sought To encourage citizens' tax compliance (i.e., paying their taxes on time and correctly), it is occasional practice to emphasise the risk of checks and fines in case of non-compliance. One drawback of this deterrent method is that it can damage…